(Update: comments from Rexel’s CEO on the group’s acquisitions, details on sales and dividend, share price)
PARIS (Agefi-Dow Jones)–The electrical equipment distribution group Rexel announced on Friday that it expects a further increase in sales in 2022, after having achieved a turnover last year which it described as “record “.
Rexel forecasts sales growth of between 4% and 6% year-on-year in 2022, on a like-for-like basis and on a constant number of days basis.
Rexel has further confirmed that it also anticipates for this year an adjusted Ebita margin – a measure of operating income before depreciation and amortization – above 6%, a target already disclosed last month.
Rexel specified in a press release that its updated strategic roadmap would be presented during an investor day to be held on June 16 in Zurich.
In 2021, Rexel’s recurring net income amounted to €575 million (277.7), up 107% year-on-year, while its adjusted Ebita grew by 69%, to €906 million. euros.
Expressed at constant scope and exchange rates and excluding the effect of changes in the price of copper-based cables, adjusted EBITDA represented 6.2% of sales in 2021, up 196 basis points in one year, in line with data released last month by the group.
Rexel’s sales increased by 16.7% on a reported basis, by 15.2% on a like-for-like basis and at current number of days and by 15.6% on a like-for-like basis and at constant number of days, reaching 14.69 billion euros in 2021.
On January 12, Rexel had already announced that it had exceeded its objectives for the 2021 financial year thanks to better than expected commercial activity in the fourth quarter. The group was aiming for full-year sales growth of between 12% and 15% at constant number of days.
According to the Factset consensus, analysts on average expected annual revenue of 14.6 billion euros, adjusted Ebita of 885 million euros and recurring net income of 531.3 million euros.
New acquisitions possible in 2022
Group sales benefited from a positive net scope effect of €150.8 million, equivalent to 1.2% of 2020 sales, due in particular to the acquisition of an American distributor of products and Mayer Electrical Services, completed last November.
Due to the rapid integration of Mayer, Rexel raised its forecasts regarding the synergies linked to the transaction. These should reach 1.5% of turnover in the first year and more than 2.5% in the third year, the group said. Rexel previously targeted synergies of approximately 1.5% from the second year.
Rexel should be able to make new acquisitions, thanks in particular to the measures to improve its profitability taken in recent years, explained Rexel’s Chief Executive Officer, Guillaume Texier, during a conference call with journalists. “We will continue to look at opportunities” in terms of acquisitions, said the manager.
Rexel will also propose the payment of a dividend of 0.75 euro per share for 2021, the “highest amount ever paid entirely in cash”. This dividend represents a distribution rate of 40% of the group’s recurring net income, whose policy is to distribute at least 40% of this result. This dividend will be submitted for the approval of the shareholders at a general meeting on April 21.
For the 2020 financial year, Rexel had paid a dividend of 0.46 euro per share.
At 10:15 a.m., Rexel shares lost 4.2%, to 20.07 euros, in a Paris market down 1.2%.
-Alice Doré, Agefi-Dow Jones; +33 (0)1 41 27 47 90; [email protected] ed: LBO
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February 11, 2022 04:16 ET (09:16 GMT)